Turkey

Turkey’s failed military coup last month rocked the foundations of its political system, yet in some ways the country has emerged stronger and more resilient.

In addition, that’s precisely what Turkey needs to deal with one of its biggest and oldest challenges: the Kurdish minority and the PKK separatists who took up arms against the Turkish military 32 years ago this week.

It might not be on investors' calendars, but European officials will take steps toward addressing two issues tomorrow. First, the EC will make a preliminary recommendation of visa-free travel in the Schengen area for Turkish passport holders. Second, the ECB governing council will hold a non-monetary policy meeting. It is expected to discuss the future of the 500-euro note.

Turkish President Recep Tayyip Erdoğan received a rapturous reception in his early days in power, but a series of political errors has sullied his public image and undermined his power.

Since his Justice and Development Party (AKP) attained power in 2002, Recep Tayyip Erdoğan has dominated Turkish politics. However, discontent about his erratic leadership is intensifying. There is a widespread perception that power has gone to his head and his political decisions are now more about aggrandizing his ego than doing the best for Turkey.

The EU – whose most powerful members manifestly do not want to extend EU membership to Turkey – is once again going through the ritual of reconsidering the country's application for membership. There are huge pluses and glaring minuses involved in any future Turkish membership; this dance still has a long way to run, it seems.

After a sharp downturn in 1999-2001, Turkey’s economy managed to grow by 5 percent per year on average from 2002 to 2012 – despite global and regional crises. There is however nothing flashy about the country's rise; its success was simply based on getting the fundamentals right, like rebuilding the banking sector, getting the budget under control, and investing heavily where it counts: infrastructure, education, health, and technology.